The Generation That Has The Most Medical Debt Might Surprise You

Medical debt is higher than it's ever been, and it's easy to see why. Per person out-of-pocket healthcare costs have continued to climb, more than doubling between 1970 and 2023 (on an inflation-adjusted basis). In 2024, the amount that the average American spent on healthcare reached more than $1,100. Combined with increases in other household expenses, which have been pushed higher due to inflation, these medical costs have become even harder for many to manage. Some age groups, in particular, seem to be feeling the strain worse than others. In fact, more millennials are bogged down by medical debt than any other generation.

According to a 2024 report by FINRA Investor Education Foundation, about 30% of millennials – currently 29 to 44 years old – have outstanding medical debt. This is a higher share than any other age group, based on data collected in the organization's 2021 survey. This compares to 26% of Gen Xers (45 to 60 years old), 24% of Gen Zers (13 to 28), and just 13% of boomers (61 to 79) who said they were saddled with medical debt. One of the factors contributing to millennials' high medical debt is unexpected bills. A separate study commissioned by Healthcare Insider, based on data collected in 2020, found that 35% of millennials were confronted with surprise medical bills in the prior year, which was notably more than Gen Xers and baby boomers at 27%.

In addition to facing a greater share of unexpected medical bills, the bill amounts that millennials are receiving are particularly high. Per the Healthcare Insider report, more than half of millennials said they received bills over $2,000 — a greater share than either Gen X or Baby Boomers. To make matters worse, 57% of millennials surveyed said they had less than $3,000 in savings to cover the bill, while more than a fifth (22%) had no savings at all.

Another reason medical debt may be a greater issue for millennials is that they are less likely to have medical insurance, with 22% reporting having none in the 2020 Healthcare Insider survey. This compares with 17% of Gen Xers and just 3% of Baby Boomers who lack health insurance. Even millennials who have insurance can still rack up debt through high deductibles and co-pays or services not covered under their plan.

Millennials juggling medical debt need to understand what really happens if you don't pay your medical bills. First, confirm the charges are accurate — many aren't. If you do owe the balance, you may qualify for financial assistance, bill forgiveness, a lower negotiated amount, or a payment plan, depending on your employment status and other details. While you will have some buffer of time to pay, an unpaid bill will eventually be sent to collections and show up on your credit report. Though your credit report is not protected from medical debt, an unpaid bill won't damage your credit until your payment has been delinquent for at least a year, if it exceeds $500. If the late payment does go on your credit report, it can lower your score by as much as 100 points, so it's important to pay bills promptly.